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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amount and Fair Value of Derivative Financial Instruments
The following tables disclose the derivative instruments’ location on the Company’s Consolidated Balance Sheets and the notional amount and fair value of those instruments at June 30, 2020 and December 31, 2019.
 
 
  
Asset Derivatives
 
 
  
June 30, 2020
 
  
December 31, 2019
 
 
  
Balance

Sheet

Location
 
  
Notional

Amount
 
  
Fair

Value
 
  
Balance

Sheet

Location
 
  
Notional

Amount
 
  
Fair

Value
 
Derivatives not designated as hedging instruments
  
  
  
  
  
  
Forward loan sales commitments
  
 
Other
 
assets
 
  
$
73,432
 
  
$
1,745
 
  
 
Other
 
assets
 
  
$
27,260
 
  
$
9
 
Interest rate lock commitments
  
 
Other assets
 
  
 
878,925
 
  
 
27,833
 
  
 
Other assets
 
  
 
117,252
 
  
 
4,518
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Total derivatives not designated as hedging instruments
  
  
$
952,357
 
  
$
29,578
 
  
  
$
144,512
 
  
$
4,527
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Total asset derivatives
  
  
$
952,357
 
  
$
29,578
 
  
  
$
144,512
 
  
$
4,527
 
     
 
 
     
 
 
        
 
 
     
 
 
  
 
  
Liability Derivatives
 
 
  
June 30, 2020
 
  
December 31, 2019
 
 
  
Balance

Sheet

Location
 
  
Notional

Amount
 
  
Fair

Value
 
  
Balance

Sheet

Location
 
  
Notional

Amount
 
  
Fair

Value
 
Derivatives designated as hedging instruments
  
  
  
  
  
  
Fair Value Hedges:
  
  
  
  
  
  
Interest rate swap contracts (hedging commercial loans)
  
 
Other liabilities
 
  
$
79,225
 
  
$
8,424
 
  
 
Other liabilities
 
  
$
82,243
 
  
$
2,394
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Total Fair Value Hedges
  
  
$
79,225
 
  
$
8,424
 
  
  
$
82,243
 
  
$
2,394
 
Cash Flow Hedge:
  
  
    
  
    
  
  
    
  
    
Interest rate swap contract (hedging FHLB borrowing)
  
 
Other liabilities
 
  
$
250,000
 
  
$
1,659
 
  
 
Other liabilities
 
  
$
0
 
  
$
0
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Total Cash Flow Hedge
  
  
$
250,000
 
  
$
1,659
 
  
  
$
0
 
  
$
0
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Total derivatives designated as hedging instruments
  
  
$
329,225
 
  
$
10,083
 
  
  
$
82,243
 
  
$
2,394
 
     
 
 
     
 
 
        
 
 
     
 
 
  
 
  
Liability Derivatives
 
 
  
June 30, 2020
 
  
December 31, 2019
 
 
  
Balance

Sheet

Location
 
  
Notional

Amount
 
  
Fair

Value
 
  
Balance

Sheet

Location
 
  
Notional

Amount
 
  
Fair

Value
 
Derivatives not designated as hedging instruments
  
  
    
  
    
  
  
    
  
    
TBA mortgage-backed securities
  
 
Other
 
liabilities
 
  
$
186,500
 
  
$
4,224
 
  
 
Other
 
liabilities
 
  
$
274,000
 
  
$
671
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Total derivatives not designated as hedging instruments
  
  
$
186,500
 
  
$
4,224
 
  
  
$
274,000
 
  
$
671
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Total liability derivatives
  
  
$
515,725
 
  
$
14,307
 
  
  
$
356,243
 
  
$
3,065
 
     
 
 
     
 
 
        
 
 
     
 
 
  
Summary of Carrying Amount Hedged Assets/(Liabilities)
The following table represents the carrying amount of the hedged assets/(liabilities) and the cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) that are designated as a fair value accounting relationship as of June 30, 2020 and December 31, 2019.
 
Derivatives in Fair Value
Hedging Relationships
  
Location in the Statement
of Condition
  
June 30, 2020
 
  
Carrying Amount
of the Hedged
Assets/(Liabilities)
 
  
Cumulative Amount
of Fair Value
Hedging Adjustment
Included in the
Carrying Amount of
the Hedged
Assets/(Liabilities)
 
 
Cumulative Amount of
Fair Value Hedging
Adjustment Remaining
for any Hedged Assets/
(Liabilities) for which
Hedge Accounting has
been Discontinued
 
 
Interest rate swaps
  
Loans, net of unearned income
  
$
80,048
 
  
$
(8,424
) 
 
$
0
 
 
Derivatives in Fair Value
Hedging Relationships
  
Location in the Statement
of Condition
  
December 31, 2019
 
  
Carrying Amount
of the Hedged
Assets/(Liabilities)
 
  
Cumulative Amount
of Fair Value
Hedging Adjustment
Included in the
Carrying Amount of
the Hedged
Assets/(Liabilities)
 
 
Cumulative Amount of
Fair Value Hedging
Adjustment Remaining
for any Hedged Assets/
(Liabilities) for which
Hedge Accounting has
been Discontinued
 
 
Interest rate swaps
  
Loans, net of unearned income
  
$
81,397
 
  
$
(2,394
) 
 
$
0
 
Schedule of Derivative Financial Instruments on Statement of Income
The effect of United’s derivative financial instruments on its unaudited Consolidated Statements of Income for the three and six months ended June 30, 2020 and 2019 are presented as follows:
 
 
 
  
Three Months Ended
 
 
  
Income Statement

Location
 
  
June 30,
2020
 
 
June 30,
2019
 
Derivatives in hedging relationships
  
  
  
Fair Value Hedges:
 
 
 
Interest rate swap contracts
  
 
Interest and fees on loans
 
  
$
(277
) 
  
$
(68
) 
     
 
 
     
 
 
  
Total derivatives in hedging relationships
  
  
$
(277
) 
  
$
(68
) 
     
 
 
     
 
 
  
Derivatives not designated as hedging instruments
  
  
  
Forward loan sales commitments
  
 
Income from Mortgage Banking Activities
 
  
 
(553
) 
  
 
492
 
TBA mortgage-backed securities
  
 
Income from Mortgage Banking Activities
 
  
 
17,204
 
  
 
(962
) 
Interest rate lock commitments
  
 
Income from Mortgage Banking Activities
 
  
 
(1,527
) 
  
 
3,833
 
     
 
 
     
 
 
  
Total derivatives not designated as hedging instruments
  
  
$
15,124
 
  
$
3,363
 
     
 
 
     
 
 
  
Total derivatives
  
  
$
14,847
 
  
$
3,295
 
     
 
 
     
 
 
  
 
 
  
 
 
  
Six Months Ended
 
 
  
Income Statement

Location
 
  
June 30,
2020
 
 
June 30,
2019
 
Derivatives in fair value hedging relationships
  
 
  
  
Fair Value Hedges:
 
 
 
 
Interest rate swap contracts
  
 
Interest and fees on loans
 
  
$
(720
) 
  
$
(98
) 
  
 
   
 
 
     
 
 
  
Total derivatives in hedging relationships
  
 
  
$
(720
) 
  
$
(98
) 
  
 
   
 
 
     
 
 
  
Derivatives not designated as hedging instruments
  
 
  
  
Forward loan sales commitments
  
 
Income from Mortgage Banking Activities
 
  
 
207
 
  
 
872
 
TBA mortgage-backed securities
  
 
Income from Mortgage Banking Activities
 
  
 
(1,771
) 
  
 
(474
) 
Interest rate lock commitments
  
 
Income from Mortgage Banking Activities
 
  
 
12,169
 
  
 
5,870
 
  
 
   
 
 
     
 
 
  
Total derivatives not designated as hedging instruments
  
 
  
$
10,605
 
  
$
6,268
 
  
 
   
 
 
     
 
 
  
Total derivatives
  
 
  
$
9,885
 
  
$
6,170